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LAWS OF MALAYSIA REPRINT Act 520 LEMBAGA PEMBANGUNAN INDUSTRI PEMBINAAN MALAYSIA ACT 1994 Incorporating all amendments up to 1 January 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH PERCETAKAN NASIONAL MALAYSIA BHD 2006

Act 520 - Cidb Act, 1994

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Page 1: Act 520 - Cidb Act, 1994

LAWS OF MALAYSIA

REPRINT

Act 520

LEMBAGA PEMBANGUNANINDUSTRI PEMBINAAN

MALAYSIA ACT 1994Incorporating all amendments up to 1 January 2006

PUBLISHED BYTHE COMMISSIONER OF LAW REVISION, MALAYSIA

UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968IN COLLABORATION WITH

PERCETAKAN NASIONAL MALAYSIA BHD2006

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LEMBAGA PEMBANGUNAN INDUSTRI PEMBINAANMALAYSIA ACT 1994

Date of Royal Assent … … … … … 24 June 1994

Date of publication in the Gazette … … 7 July 1994

PREVIOUS REPRINT

First Reprint ... ... ... ... ... 2002

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LAWS OF MALAYSIA

Act 520

LEMBAGA PEMBANGUNAN INDUSTRI PEMBINAANMALAYSIA ACT 1994

ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY

Section

1. Short title, commencement and application

2. Interpretation

PART II

THE LEMBAGA

3. The Lembaga

4. Functions of the Lembaga

5. Membership of the Lembaga

6. Public servants

7. Power of the Minister to give directions

8. Returns, reports, accounts and information

9. Power of the Lembaga to establish committees

PART III

CHAIRMAN, OFFICER, SERVANTS

10. The Chairman

11. Chief Executive Officer

12. Appointment of officers and servants of the Lembaga

13. Regulations with respect to conditions of service

14. Regulations with respect to discipline

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PART IV

FINANCE

Section

15. The Fund

16. Conservation of the Fund

17. Expenditure to be charged on the Fund

18. Expenditure and preparation of estimates

19. Statutory Bodies (Accounts and Annual Reports) Act 1980 to apply

PART V

OTHER POWERS OF THE LEMBAGA

20. Power to borrow

21. Power to grant loans

22. Investment

23. Power to employ

24. Power to establish corporations

PART VI

REGISTRATION OF CONTRACTORS

25. Registration of contractors

26. Register

27. Notice to require particulars

28. Penalty for failure to comply with notice

29. Penalty for carrying out construction works without being registered

30. Notice to unregistered contractor to stop construction works

31. Registered contractor subject to this Act

PART VII

ACCREDITATION AND CERTIFICATION OF SKILLEDCONSTRUCTION WORKERS AND CONSTUCTION

SITE SUPERVISORS

32. Accreditation and certification

33. Register

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PART VIII

LEVY

Section

34. Imposition of levy

PART IX

ENFORCEMENT AND INVESTIGATION

35. Appointment of Investigating Officers

PART X

GENERAL

36. Obligation of secrecy

37. Power to make regulations

38. Conduct of prosecution

39. General penalty

40. Power to exempt

41. Transitional and saving provision

FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

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7Lembaga Pembangunan IndustriPembinaan Malaysia

LAWS OF MALAYSIA

Act 520

LEMBAGA PEMBANGUNAN INDUSTRI PEMBINAANMALAYSIA ACT 1994

An Act to establish the Lembaga Pembangunan Industri PembinaanMalaysia and to provide for its function relating to the construc-tion industry and for matters connected therewith.

[Part I, II, III, IV, V, IX & s. 37, 38, 39 and 40 of Part X—1 December 1994, P.U. (B) 534/1994;

Part VI & ss. 41(1) of Part X—20 July 1995, P.U. (B) 339/1995;Part VIII & ss. 41(2) of Part X—

1 October 1995, P.U. (B) 457/1995;Part VII— 1 July 1999, P.U. (B) 227/1999]

BE IT ENACTED by the Seri Paduka Baginda Yang di-PertuanAgong with the advice and consent of the Dewan Negara andDewan Rakyat in Parliament assembled, and by the authority ofthe same, as follows:

PART I

PRELIMINARY

Short title, commencement and application

1. (1) This Act may be cited as the Lembaga Pembangunan IndustriPembinaan Malaysia Act 1994 and shall come into force on suchdate as the Minister may, by notification in the Gazette, appoint.

(2) This Act shall apply throughout Malaysia; however theMinister may by order suspend the operation of the whole or anyof the provisions of this Act in any part of Malaysia.

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Interpretation

2. In this Act, unless the context otherwise requires—

“Chairman” means the Chairman of the Lembaga appointedunder section 5;

“Chief Executive Officer” means the Chief Executive Officerappointed under section 11;

“company” has the same meaning as that assigned to “corporation”under subsection 4(1) Companies Act 1965 [Act 125];

“contractor” means a person who undertakes to carry out andcomplete any construction works;

“construction industry” means the industry concerning constructionworks;

“construction site supervisor” means a person assigned to theconstruction site by the contractor to supervise the constructionworks;

“construction works” means the construction, extension,installation, repair, maintenance, renewal, removal, renovation,alteration, dismantling, or demolition of—

(a) any building, erection, edifice, structure, wall, fence orchimney, whether constructed wholly or partly above orbelow ground level;

(b) any road, harbour works, railway, cableway, canal oraerodrome;

(c) any drainage, irrigation or river control works;(d) any electrical, mechanical, water, gas, petrochemical or

telecommunication works; or(e) any bridge, viaduct, dam, reservoir, earthworks, pipe-

line, sewer, aqueduct, culvert, drive, shaft, tunnel orreclamation works,

and includes any works which form an integral part of, or arepreparatory to or temporary for the works described in paragraphs(a) to (e), including site clearance, soil investigation and improve-ment, earth-moving, excavation, laying of foundation, site resto-ration and landscaping;

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“Fund” means the fund established under section 15;

“Lembaga” means the Lembaga Pembangunan Industri PembinaanMalaysia established under section 3;

“member” means a member of the Lembaga including theChairman;

“Minister” means the Minister for the time being charged withthe responsibility for matters relating to works;

“skilled construction worker” means a person possessing theaccepted level of skill as determined by the Lembaga of one ormore of the trades as listed in the Third Schedule.

PART II

THE LEMBAGA

The Lembaga

3. There is hereby established a body corporate by the name of“Lembaga Pembangunan Industri Pembinaan Malaysia” which shallhave perpetual succession and a common seal, which may sue andbe sued in its corporate name and, subject to and for the purposesof this Act, may enter into contracts and may acquire, purchase,take, hold and enjoy movable and immovable property of everydescription and may convey, assign, surrender, yield up, charge,mortgage, demise, reassign, transfer or otherwise dispose of, ordeal with any movable or immovable property or any interesttherein vested in the Lembaga upon such terms as it deems fit.

Functions of the Lembaga

4. (1) The functions of the Lembaga shall be—(a) to promote and stimulate the development, improvement

and expansion of the construction industry;(b) to advise and make recommendations to the Federal

Government and the State Government on matters affectingor connected with the construction industry;

(c) to promote, stimulate and undertake research into anymatter relating to the construction industry;

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(d) to promote, stimulate and assist in the export of servicerelating to the construction industry;

(e) to provide consultancy and advisory services with respectto the construction industry;

(f) to promote quality assurance in the construction industry;(g) to encourage the standardization and improvement of

construction techniques and materials;(h) to initiate and maintain a construction industry information

system;(i) to provide, promote, review and coordinate training

programs organized by public and private constructiontraining centres for skilled construction workers andconstruction site supervisors;

(j) to accredit and register contractors and to cancel, suspendor reinstate the registration of any registered contractor;and

(k) to accredit and certify skilled construction workers andconstruction site supervisors.

(2) The Lembaga shall have power to do all things expedientor reasonably necessary for, or incidental to, the performance ofits functions and, in particular, but without prejudice to the generalityof the foregoing—

(a) to carry on all activities, particularly activities in respectof the construction industry, the carrying on whereofappears to it to be requisite, advantageous or convenientfor or in connection with the performance of its functions;

(b) to award certificates of proficiency;(c) with the approval of the Minister, to establish or expand,

or promote the establishment or expansion of, companies,corporations or other bodies to carry on any such activitieseither under the control or partial control of the Lembagaor independently;

(d) to provide financial assistance in the form of loans orotherwise to persons engaged in the construction industryfor the purpose of promoting the said industry and provideany guarantees on their behalf;

(e) to impose fees or any other charges as it deems fit forgiving effect to any of its functions or powers;

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(f) to receive, in consideration of any services that may berendered by it, such commission or payments as may beagreed upon with any person; and

(g) to do such other things as it deems fit to enable it to carryout its functions and powers effectively.

(3) Subject to section 7, it shall be the responsibility of theLembaga in performing its functions under this Act to ensure thatthe functions are performed in such manner as shall be in furtheranceof the policy of the Government for the time being in force andin particular relating to the construction industry.

Membership of the Lembaga

5. (1) The Lembaga shall consist of the following members:(a) a Chairman;(b) six representatives from the private sector; and(c) four representatives who shall hold office in the public

services,

who shall be appointed by the Minister.

(2) The provisions of the First Schedule shall apply to theLembaga.

Public servants

6. All members, officers and servants of the Lembaga, whiledischarging their duties as such members, officers and servants,shall be deemed to be public servants within the meaning of thePenal Code [Act 574].

Power of the Minister to give directions

7. The Lembaga shall be responsible to the Minister, and theMinister may, from time to time, give directions not inconsistentwith this Act and the Lembaga shall, as soon as possible, giveeffect to all such directions.

Returns, reports, accounts and information

8. (1) The Lembaga shall furnish to the Minister, and such publicauthority as may be directed by the Minister, such returns, accountsand information with respect to its property and activities as theMinister may, from time to time, require or direct.

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(2) Without prejudice to the generality of subsection (1), theLembaga shall, as soon as practicable after the end of each financialyear, cause to be made and transmitted to the Minister and, if sodirected by the Minister, to any other public authority a reportdealing with the activities of the Lembaga during the precedingfinancial year and the report shall be in such form and shallcontain such information relating to the proceedings and policy ofthe Lembaga as the Minister may, from time to time, specify.

Power of the Lembaga to establish committees

9. (1) The Lembaga may establish such committees as it considersnecessary or expedient to assist it in the performance of its functionsunder this Act.

(2) The Lembaga may appoint any suitable person to be a memberof any committee established under subsection (1).

(3) A committee established under this section may elect anyof its members to be chairman and may regulate its own procedureand, in the exercise of its powers under this subsection, suchcommittee shall be subject to and act in accordance with anydirection given to it by the Lembaga.

(4) Any meeting of a committee established under this sectionshall be held at such time and place as the chairman of the committeemay, subject to subsection (3), determine.

(5) A committee may invite any person to attend any of itsmeetings for the purpose of advising it on any matter under discussionprovided that the person so invited shall not be entitled to vote atany such meeting.

(6) The members of a committee established under this sectionand any person invited under subsection (5) to attend any meetingof a committee may be paid such allowances as the Lembaga maydetermine.

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PART III

CHAIRMAN, OFFICER, SERVANTS

The Chairman

10. (1) Without prejudice to the other provisions of this Act, theChairman shall perform such duties as the Minister may, fromtime to time, determine.

(2) If the Chairman is temporarily absent from Malaysia orincapacitated through illness or for any other good reason is unableto perform his duties, the Minister shall appoint any member ofthe Lembaga to carry out the duties of the Chairman.

Chief Executive Officer

11. (1) The Lembaga may, with the approval of the Minister,appoint a person, designated as “Chief Executive Officer” to bethe principal executive officer and vest him with such powers andimpose upon him such duties as may be determined by the Lembaga.

(2) The Chief Executive Officer shall be responsible for theproper administration and management of the functions and affairsof the Lembaga.

(3) The Chief Executive Officer shall have general control ofthe other officers and servants of the Lembaga.

(4) The Chief Executive Officer shall perform such further dutiesas the Lembaga may from time to time direct.

(5) If the Chief Executive Officer is temporarily absent fromMalaysia or is incapacitated through illness or for any other goodreason is unable to perform his duties, the Lembaga may direct anyother officer to carry out his duties.

Appointment of officers and servants of the Lembaga

12. (1) Subject to any regulations made under section 13, theLembaga may appoint on such terms and conditions as it maythink desirable such officers and servants as may be necessary forcarrying out the purposes of this Act.

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(2) No person shall be eligible for employment as an officer orservant of the Lembaga if he has, directly or indirectly, by himselfor his partner, any share or interest in any contract or proposedcontract with, for or on behalf of the Lembaga.

Regulations with respect to conditions of service

13. The Lembaga may, from time to time, with the approval ofthe Minister, make regulations with respect to the conditions ofservice of its officers and servants.

Regulations with respect to discipline

14. (1) The Lembaga may, from time to time, with the approvalof the Minister, make regulations with respect to the discipline ofits officers and servants.

(2) The regulations made under this section may include provisionsfor—

(a) the interdiction with reduction in salary or in otherremuneration; or

(b) the suspension without salary or other remuneration,

of an officer or servant of the Lembaga during the pendency ofdisciplinary proceedings against him.

(3) The regulations made under this section shall create suchdisciplinary offences and provide for such disciplinary punishmentsas the Lembaga may deem appropriate, and the punishments soprovided may extend to dismissal or reduction in rank.

(4) The regulations made under this section may, in prescribingthe procedure for disciplinary proceedings, provide for an opportunityfor representations to be made by the person against whom thedisciplinary proceedings are taken before a decision is arrived atby the Lembaga on the disciplinary charge laid against such person.

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PART IV

FINANCE

The Fund

15. (1) There is hereby established, for the purposes of this Act,a fund to be administered and controlled by the Lembaga.

(2) The Fund shall consist of—(a) such sums as may be provided from time to time for the

purposes of this Act by Parliament;(b) moneys earned from the consultancy and advisory services

provided by the Lembaga;(c) moneys earned by the operation of the construction industry

information system;(d) moneys earned or arising from any property, investments,

mortgages, charges or debentures acquired by or vestedin the Lembaga;

(e) any property, investments, mortgages, charges or debenturesacquired by or vested in the Lembaga;

(f) sums borrowed by the Lembaga for the purpose of meetingany of its obligations or discharging any of its duties;

(g) moneys earned from the registration of contractors andthe accreditation, certification and registration of skilledconstruction workers and construction site supervisors;

(h) moneys collected by way of levy under section 34 of thisAct; and

(i) all other sums or property which may in any mannerbecome payable to or vested in the Lembaga in respectof any matter incidental to its functions, powers andduties.

Conservation of the Fund

16. It shall be the duty of the Lembaga to conserve the Fund byso performing, exercising and discharging its funtions, powers andduties under this Act as to secure that the total revenues of theLembaga are, subject to any directions given by the Minister,sufficient to meet all sums properly chargeable to its revenueaccount, including depreciation and interest on capital, taking oneyear with another.

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Expenditure to be charged on the Fund

17. The Fund shall be expended for the purposes of—

(a) paying any expenditure lawfully incurred by the Lembaga,including legal fees and costs and other fees and costsand the remuneration of officers and servants appointedand employed by the Lembaga, including superannuationallowances;

(b) paying any other expenses, costs or expenditure properlyincurred or accepted by the Lembaga in the performanceof its functions and powers under section 4;

(c) repaying any moneys borrowed under this Act and theinterest due thereon; and

(d) generally, paying any expenses for carrying into effectthis Act.

Expenditure and preparation of estimates

18. (1) The expenditure of the Lembaga up to such amount asmay be authorized by the Minister for any one year shall bedefrayed out of the Fund.

(2) Before the beginning of each year, the Lembaga shall submitto the Minister an estimate of the expenditure for the followingyear in such form and containing such particulars as the Ministermay direct, and the Minister shall, before the beginning of thefollowing year, notify the Lembaga of the amount authorized forexpenditure generally or of the amounts authorized for eachdescription of expenditure.

(3) The Lembaga may at any time submit to the Minister asupplementary estimate for any one year and the Minister mayallow the whole or any part of the additional expenditure includedtherein.

(4) The Minister may direct the Lembaga to submit a copy ofthe estimate or supplementary estimate, as the case may be, tosuch other public authority as may be specified in the direction.

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Statutory Bodies (Accounts and Annual Reports) Act 1980 toapply

19. The Statutory Bodies (Accounts and Annual Reports) Act1980 [Act 240] shall apply to the Lembaga and any corporationestablished under this Act.

PART V

OTHER POWERS OF THE LEMBAGA

Power to borrow

20. (1) The Lembaga may, from time to time, with the approvalof the Minister, borrow, at such rate of interest and for such periodand upon such terms as to the time and method of repayment andotherwise as the Minister may approve, any sums required by theLembaga for meeting any of its obligations or discharging any ofits duties.

(2) The Lembaga may, from time to time, with the approval ofthe Minister, borrow money by the issue of bonds, debentures orstocks of such class and value and upon such terms as it may, withthe approval of the Minister, deem expedient, for all or any of thefollowing purposes:

(a) the provision of working capital;(b) the performance of the functions, the exercise of the

powers and the discharge of the duties of the Lembagaunder this Act;

(c) the performance of such additional functions as may beundertaken by the Lembaga under this Act;

(d) the redemption of any shares or stocks which it is requiredor entitled to redeem; and

(e) any other expenditure properly chargeable to capitalaccount.

Power to grant loans

21. In the performance of its functions, the exercise of its poweror the discharge of its duties, the Lembaga may, with the approvalof the Minister, grant loans, and such loans may be granted subjectto such terms and conditions as the Lembaga may, with the approvalof the Minister, deem fit to impose in any particular case.

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Investment

22. The assets of the Lembaga shall, in so far as they are notrequired to be expended by the Lembaga under this Act, be investedin such manner as the Minister may approve.

Power to employ

23. The Lembaga may employ and pay agents and technicaladvisers, including advocates and solicitors, bankers, fund managers,stockbrokers, surveyors, valuers and other persons, to transact anybusiness or to do any act required to be transacted or done in theperformance of its functions, the exercise of its powers or thedischarge of its duties or for the better carrying into effect thepurposes of this Act.

Power to establish corporations

24. (1) The Lembaga may from time to time, with the approvalof the Minister, by order published in the Gazette, establish acorporation, by such name as the Lembaga may think fit, to carryout and have the charge, conduct and management of any project,scheme or enterprise which has been planned or undertaken by theLembaga in the performance of its functions, the exercise of itspowers or the discharge of its duties.

(2) The Second Schedule shall apply to every corporationestablished by the Lembaga under subsection (1).

PART VI

REGISTRATION OF CONTRACTORS

Registration of contractors

25. (1) No person shall undertake to carry out and complete anyconstruction works unless he is registered with the Lembaga andholds a valid certificate of registration issued by the Lembaga.

(2) Every certificate of registration shall be in the prescribedmanner and form.

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Register

26. The Lembaga shall keep and maintain a Register which shallcontain the names, business addresses and other particulars ofcontractors who are registered as registered contractors.

Notice to require particulars

27. (1) For the purpose of carrying out its functions under section4, the Lembaga may by notice in the prescribed form require anyperson to furnish any particulars which are within the person’sknowledge, or which he is able to obtain, relating to any contractoror construction works in such manner and form as the Lembagamay specify.

(2) The notice under subsection (1) may be served by deliveringit to the person at the construction site, his working place or athis residence.

(3) A notice may require the information to be furnished atspecific times or within specific intervals.

(4) The Lembaga shall not require any person to supplyinformation which will disclose any trade secret.

Penalty for failure to comply with notice

28. A person who—(a) fails to comply with the requirements of a notice issued

under section 27; or(b) knowingly or recklessly furnishes or causes to be furnished

any false particulars on any matter specified in the noticeissued under section 27,

shall be guilty of an offence and shall, on conviction, be liable toa fine not exceeding five hundred ringgit and, in the case of acontinuing offence, to a fine not exceeding five hundred ringgitfor every day or part of a day during which the offence continuesafter conviction.

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Penalty for carrying out construction works without beingregistered

29. A person who undertakes to carry out or carries out andcompletes any construction works without being registered as aregistered contractor with the Lembaga shall be guilty of an offenceunder this Act and shall, on conviction, be liable to a fine notexceeding fifty thousand ringgit.

Notice to unregistered contractor to stop construction works

30. (1) Where the Lembaga finds that construction works arebeing undertaken or carried out by a contractor who is not registeredwith the Lembaga, the Lembaga may by notice in the prescribedform served on the contractor require him to abstain from commencingor proceeding with the construction works.

(2) A person who fails to comply with the requirements of thenotice under subsection (1) shall be guilty of an offence and shall,on conviction, be liable to a fine not exceeding five hundredringgit, and in the case of a continuing offence, to a fine notexceeding five hundred ringgit for every day or part of a dayduring which the offence continues after conviction.

Registered contractor subject to this Act

31. Every registered contractor shall be subject to this Act.

PART VII

ACCREDITATION AND CERTIFICATION OF SKILLEDCONSTRUCTION WORKERS AND CONSTRUCTION

SITE SUPERVISORS

Accreditation and certification

32. (1) The Lembaga shall accredit and certify skilled constructionworkers and construction site supervisors in the prescribed mannerand form.

(2) The skilled construction workers referred to insubsection (1) are as specified in the Third Schedule.

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(3) The Minister may, from time to time, by an order publishedin the Gazette, add to, delete from, vary or amend the ThirdSchedule.

Register

33. The Lembaga shall keep and maintain a Register which shallcontain the names, addresses, trades, skills and other particularsof the accredited skilled construction workers and constructionsite supervisors.

PART VIII

LEVY

Imposition of levy

34. (1) Every registered contractor shall notify and submit to theLembaga any contract which he has executed on any constructionworks having a contract sum of above five hundred thousandringgit.

(2) There shall be imposed by the Lembaga on every registeredcontractor, before the commencement of any construction workshaving a contract sum of above five hundred thousand ringgit, alevy which shall be a quarter per centum of the contract sum.

(3) The Lembaga shall then notify the registered contractor ofthe amount of levy to be paid within such period as it may prescribe.

(4) The levy may be paid to the Lembaga or its authorizedagents at such office or place as may be determined by the Lembaga.

(5) Where a registered contractor fails to pay any levy duewithin such period as may be prescribed, the registered contractorshall be guilty of an offence and shall, on conviction, be liable toa fine not exceeding fifty thousand ringgit.

(6) The Minister may, from time to time, by order published inthe Gazette reduce or increase the rate of levy specified insubsection (2).

(7) The amount of any levy payable under this section shall berecoverable as a civil debt due to the Lembaga.

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(8) In this section, “contract sum” means the consideration fora contract in respect of any construction works.

PART IX

ENFORCEMENT AND INVESTIGATION

Appointment of Investigating Officers

35. (1) The Lembaga may appoint such number of investigatingofficers to be known as Investigating Officers of the Lembaga asit considers necessary for the purposes of carrying out investigationof any offence or inspection under this Act.

(2) An Investigating Officer shall, for the purposes of ascertainingwhether the provisions of this Act or any regulations made thereunderare being complied with, have power at all reasonable times toenter into any construction site where construction works are beingcarried out and there to make such enquiry or inspection as maybe necessary for such purposes.

(3) In the course of an investigation or inspection under thissection the Investigating Officer may—

(a) put questions concerning the registration of any contractor,the accreditation and certification of the skilled constructionworkers and construction site supervisors or the paymentof levy, and all such persons shall be legally bound toanswer such questions truthfully to the best of their ability;and

(b) require any such person to produce to him any recordsrequired to be kept under this Act and may seize themor take copies of them.

(4) Every Investigating Officer when exercising any powersunder this Act shall declare his office and shall produce his authorityin writing to any person affected by the exercise of such powers.

(5) Upon completion of his investigation, the Investigating Officershall immediately give all information relating to the commissionof any offence to an officer in charge of a police station and apolice officer may, by warrant, arrest any person who may havecommitted an offence under this Act or any regulation madethereunder.

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PART X

GENERAL

Obligation of secrecy

36. (1) Except for any of the purposes of this Act or for thepurpose of any civil or criminal proceedings under any writtenlaw, no member, officer or servant of the Lembaga shall discloseany information which has been obtained by him in the course ofhis duties and which is not published in pursuance of this Act.

(2) Any person contravening subsection (1) shall be guilty ofan offence and shall, on conviction, be liable to a fine not exceedingone thousand ringgit or to imprisonment for a term not exceedingsix months or to both.

Power to make regulations

37. (1) The Lembaga may, with the approval of the Minister,make such regulations as may be expedient or necessary for thebetter carrying out of the provisions of this Act.

(2) Without prejudice to the generality of subsection (1),regulations may be made for—

(a) prescribing the manner and form for the registration ofcontractors and the conditions for the cancellation,suspension or reinstatement of the registration of anyregistered contractors;

(b) prescribing the manner and form for the collection oflevy;

(c) prescribing the form and manner of service of any noticerequired under this Act;

(d) prescribing the fees and charges to be paid in respect ofany matter required for the purposes of this Act;

(e) prescribing the manner and forms for the accreditationand certification of skilled construction workers andconstruction site supervisors;

(f) prescribing the responsibilities and control of officersand servants of the Lembaga;

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(g) prescribing the manner in which and the terms andconditions on which loans may be granted by the Lembagaunder section 21;

(h) providing generally for the performance of the functions,the exercise of the powers and discharge of duties of theLembaga under the provisions of this Act; and

(i) any other matter generally to give effect to the provisionsof this Act.

Conduct of prosecution

38. (1) No prosecution for any offence under this Act shall beinstituted except with the consent in writing of the Public Prosecutor.

(2) Any officer of the Lembaga authorized in writing by theChairman of the Lembaga may conduct the prosecution of anyoffence under this Act.

General penalty

39. Any person who by any act or omission contravenes anyprovision under this Act or any regulations made thereunder shallbe guilty of an offence and where no penalty is expressly providedshall, on conviction, be liable to a fine not exceeding five thousandringgit.

Power to exempt

40. (1) The Minister may by order published in the Gazette exempt,subject to such conditions as he may deem fit to impose, anyperson or class of persons from all or any of the provisions of thisAct or the regulations made thereunder—

(a) on the ground that the contractor is carrying out constructionworks for the purpose of building a residence for his ownuse;

(b) on the ground that the contractor is employing less thanthree workers for carrying out the construction works; or

(c) for any good reason which is consistent with the purposesof this Act.

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(2) The Minister may at any time by order published in theGazette revoke any order made under subsection (1) if he is satisfiedthat the exemption should no longer be granted.

Transitional and saving provision

41. (1) Any person who immediately before the date ofcommencement of this Act was carrying out any constructionworks may continue to do so during the period of twelve monthsfrom the commencement of this Act:

Provided that during that period such person shall as soon aspracticable make an application for registration as a contractor orfor accreditation, certification and registration as a skilled constructionworker or construction site supervisor.

(2) Any contractor who is carrying out any construction workspursuant to a contract executed before the date of commencementof this Act shall be exempted from the payment of any levy undersection 34.

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FIRST SCHEDULE

[Subsection 5(2)]

PROVISIONS APPLICABLE TO THE LEMBAGA

Appointment, revocation and resignation

1. (1) Subject to such conditions as may be specified in his instrument ofappointment, a member of the Lembaga shall hold office for a term not exceedingtwo years and is eligible for reappointment.

(2) The appointment of any member may at any time be revoked by theMinister without assigning any reason therefor.

(3) A member may at any time resign his office by letter addressed to theMinister.

(4) Every member shall devote such time to the business of the Lembagaas is necessary to discharge his duties effectively.

Vacation of office

2. (1) The office of a member of the Lembaga shall be vacated—

(a) if he dies;

(b) if there has been proved against him, or he has been convicted on,a charge in respect of—

(i) an offence involving fraud, dishonesty or moral turpitude;

(ii) an offence under any law relating to corruption or under section36; or

(iii) any other offence punishable with imprisonment (in itself onlyor in addition to or in lieu of a fine) for more than two years;

(c) if he becomes bankrupt;

(d) if he is of unsound mind or is otherwise incapable of discharging hisduties;

(e) if he absents himself from three consecutive meetings of the Lembagawithout leave of the Lembaga;

(f) if his resignation is accepted by the Minister; or

(g) if his appointment is revoked by the Minister.

(2) Where any person ceases to be a member by reason of any of theprovisions of this Act, another person shall be appointed in his place in accordancewith the provisions applying.

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Remuneration or allowance

3. There may be paid to members of the Lembaga or any person (not beingan officer or servant of the Lembaga who is within the ambit of the provisionsof this Act relating to the terms and conditions of service applicable to his case)such remuneration or allowance as the Minister may determine.

Meetings

4. (1) The Lembaga shall meet at least once in every two months.

(2) The quorum of the Lembaga shall be seven.

(3) Subject to the provisions of this Act, the Lembaga shall determine itsown procedure.

Lembaga may invite others to meetings

5. The Lembaga may invite or request any person (not being a member of theLembaga) to attend any meeting or deliberation of the Lembaga for the purposeof advising it on any matter under discussion but any person so attending shallhave no right to vote at the said meeting or deliberation.

Common seal

6. (1) The Lembaga shall have a common seal which shall bear such deviceas the Lembaga shall approve and such seal may from time to time be broken,changed, altered or made anew as the Lembaga may think fit.

(2) Until a seal is provided by the Lembaga, a stamp bearing the words“Lembaga Pembangunan Industri Pembinaan Malaysia” may be used and shallbe deemed to be the common seal of the Lembaga.

(3) The common seal shall be kept in the custody of the Chairman or suchother person as may be authorized by the Lembaga, and shall be authenticatedby the Chairman or such authorized person or by any officer authorized byeither of them in writing; and all deeds, documents and other instrumentspurporting to be sealed with the said seal, authenticated as aforesaid shall, untilthe contrary is proved be deemed to have been validly executed:

Provided that any document or instrument which if executed by a person notbeing a body corporate would not be required to be under seal may in likemanner be executed by the Lembaga; and any such document or instrument maybe executed on behalf of the Lembaga by any officer or servant of the Lembagagenerally or specially authorized by the Lembaga in that behalf.

(4) The common seal of the Lembaga shall be officially and judiciallynoticed.

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Disclosure of interest

7. A member of the Lembaga having, directly or indirectly, by himself or hispartner, an interest in any company or undertaking with which the Lembagaproposes to make a contract or having an interest in any such contract or inany matter under discussion by the Lembaga shall disclose to the Lembaga thefact of his interest and the nature thereof, and such disclosure shall be recordedin the minutes of the Lembaga and, unless specifically authorized thereto bythe Chairman, such member shall take no part in the deliberation or decisionof the Lembaga relating to the contract or matter.

Minutes

8. (1) The Lembaga shall cause minutes of all its meetings to be maintainedand kept in a proper form.

(2) Any minutes made of meetings of the Lembaga shall, if duly signed, beadmissible in evidence in all legal proceedings without further proof and everymeeting of the Lembaga in respect of the proceedings of which minutes havebeen so made shall be deemed to have been duly convened and held and allmembers thereat to have been duly qualified to act.

Validity of acts and proceedings

9. No act done or proceeding taken under this Act shall be questioned on theground of—

(a) any vacancy in the membership of, or any defect in the constitutionof, the Lembaga;

(b) the contravention by any member of the Lembaga of the provisionsof paragraph 7; or

(c) any omission, defect or irregularity not affecting the merits of thecase.

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SECOND SCHEDULE

[Subsection 24(2)]

PROVISIONS APPLICABLE TO A CORPORATION ESTABLISHEDBY THE LEMBAGA

Power of the Lembaga to make regulations in respect of corporation

1. The Lembaga shall, with the approval of the Minister, on or before the dateon which any corporation is established under section 24, make regulations inrespect of such corporation defining—

(a) the purposes and objects for which the corporation is established;

(b) the rights, powers, duties and functions of the corporation;

(c) the system of management thereof; and

(d) the relations between the corporation and the Lembaga and the Lembaga’srights of control over such corporation.

Limitation on power to establish corporation

2. Nothing in paragraph 1 shall be deemed to authorize the Lembaga to makeregulations to establish any corporation for any purpose or object more extensivein scope than the purposes or objects for which the Lembaga has been constitutedor to confer on any corporation any right, duty, power or function which is notwithin the rights, duties, powers or functions of the Lembaga under this Act.

Effect of regulations

3. Subject to the provisions of this Act and of any regulations made undersection 38, any regulations made under paragraph 1 shall be binding on thecorporation in respect of which they were made and shall have effect for allpurposes as if they had been enacted in this Act.

Amendment of regulations

4. The Lembaga may at any time, with the approval of the Minister, amend,revoke or add to any regulations made under paragraph 1 in respect of anycorporation.

Register of corporations

5. The Lembaga shall keep a register in the prescribed form of all corporationsestablished by it under section 24 and such register, together with copies of allregulations made under paragraphs 1 and 4, shall be open to public inspectionat such place or places and at such time as it may prescribe.

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Winding up

6. (1) The Lembaga may, with the approval of the Minister, by order publishedin the Gazette, direct that any corporation established by it be wound up anddissolved.

(2) Upon the dissolution of any corporation under this paragraph the assetsof the corporation after discharging all its liabilities shall be transferred to andshall vest in the Lembaga.

(3) The winding up of a corporation under this paragraph shall be conductedin such manner as the Lembaga may prescribe.

Corporation to be bodies corporate

7. Every corporation established under section 24 shall be a body corporateby such name as the Lembaga shall give to it and shall have perpetual succession,and a common seal and may sue and be sued in such name and, for the purposeof carrying into effect the project, scheme or enterprise for which it has beenestablished, may enter into contracts and may hold and deal in or with anyimmovable or movable property and may do all other matters and things incidentalor appertaining to a body corporate not inconsistent with the provisions of thisAct and subject to such restrictions or limitations as may be prescribed by theLembaga in each case.

Common seal of corporations

8. (1) Every corporation shall have a common seal which shall bear suchdevice as the corporation, with the approval of the Lembaga, may approve andsuch seal may from time to time be broken, changed, altered or made anew asthe corporation, with the approval of the Lembaga, may think fit.

(2) Until a seal is provided by the corporation, a stamp bearing the nameof the corporation encircling the letters “LPIPM” may be used and shall bedeemed to be the common seal of the corporation.

(3) The common seal shall be kept in the custody of such person as maybe authorized by the corporation, and shall be authenticated by such person;and all deeds, documents and other instruments purporting to be sealed withthe said seal, authenticated as aforesaid, shall, until the contrary is proved, bedeemed to have been validly executed:

Provided that any document or instrument which if executed by a person notbeing a body corporate would not be required to be under seal may in likemanner be on behalf of the corporation by any officer or servant of thecorporation generally or specially authorized by the corporation in that behalf.

(4) The common seal of every corporation shall be officially and judiciallynoticed.

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THIRD SCHEDULE

[Section 2 and subsection 32(2)]

SKILLED CONSTRUCTION WORKERS

1. Building Air-condition Installer

2. Industrial Air-condition Installer

3. Bar-bender

4. Block-layer

5. Bricklayer

6. Carpenter

7. Ceiling Fixer

8. Chargeman (Registered with Jabatan Bekalan Elektrik)

9. Concrete Pumping Equipment Operator

10. Concretor

11. Crawler Crane Operator

12. Drain-layer

13. Draughtsman—Civil and Structural Works

14. Draughtsman—Mechanical and Engineering Works

15. Draughtsman—Architectural Works

16. Drywall Installer

17. Excavator Operator

18. Fire Fighting Installer

19. Formworker

20. Gas Pipe Fitter—Industrial

21. Gas Pipe Fitter—Building

22. Glazier

23. Ironmonger

24. Joiner

25. Landscaper—Soft

26. Landscaper—Hard

27. Metalworker

28. Mobile Elevating Work Platform Operator

29. Painter

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30. Paviour

31. Piling Rigger

32. Plasterer

33. Plumber—Building

34. Plumber—Water Reticulation

35. Roofer

36. Retro-fitting

37. Sanitary Fitter

38. Scaffolder

39. Sign Maker

40. Soil Investigation Plant Operator

41. Specialized Equipment Installer

42. Steel Structure Fabricator

43. Stone (Rubble) Mason

44. Slinging and Rigging Operator

45. Tiler

46. Timber Structures Erector

47. Tower Crane Operator

48. Waterproof Works Worker

49. Welder

50. Wireman (Registered with Suruhanjaya Tenaga)

51. Site Supervisor—Architectural and Building Works

52. Site Supervisor—Building Services

53. Site Supervisor—Civil and Infrastructure Works

54. Site Supervisor—Electrical Works

55. Site Supervisor—General

56. Site Supervisor—Maintenance Works

57. Site Supervisor—Mechanical Works

58. Site Supervisor—Structural Works

59. Site Supervisor—Safety

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LAWS OF MALAYSIA

Act 520

LEMBAGA PEMBANGUNAN INDUSTRI PEMBINAANMALAYSIA ACT 1994

LIST OF AMENDMENTS

Amending law Short title In force from

P.U. (A) 274/1999 Lembaga Pembangunan Industri 01-07-1999Pembinaan Malaysia (Amendmentof Third Schedule) Order 1999

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LAWS OF MALAYSIA

Act 520

LEMBAGA PEMBANGUNAN INDUSTRI PEMBINAANMALAYSIA ACT 1994

LIST OF SECTIONS AMENDED

Section Amending authority In force from

Third Schedule P.U. (A) 274/1999 01-07-1999

DICETAK OLEHPERCETAKAN NASIONAL MALAYSIA BERHAD,KUALA LUMPURBAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA